TY - JOUR
T1 - Local sports sentiment and returns of locally headquartered stocks
T2 - A firm-level analysis
AU - Chang, Shao-Chi
AU - Chen, Sheng Syan
AU - Chou, Robin K.
AU - Lin, Yueh Hsiang
PY - 2012/6/1
Y1 - 2012/6/1
N2 - We undertake a firm-level analysis of the relation between National Football League (NFL) game outcomes and the return patterns of Nasdaq firms headquartered geographically near the NFL teams. We find that a team's loss leads to lower next-day returns for locally headquartered stocks and that this impact increases for a surprising loss or a critical game loss. The negative effects of game losses are stronger for stocks that are more vulnerable to shifts in sports sentiment. Our results suggest that the game outcomes of local sports teams influence investor sentiment, which significantly affects the returns of localized trading stocks.
AB - We undertake a firm-level analysis of the relation between National Football League (NFL) game outcomes and the return patterns of Nasdaq firms headquartered geographically near the NFL teams. We find that a team's loss leads to lower next-day returns for locally headquartered stocks and that this impact increases for a surprising loss or a critical game loss. The negative effects of game losses are stronger for stocks that are more vulnerable to shifts in sports sentiment. Our results suggest that the game outcomes of local sports teams influence investor sentiment, which significantly affects the returns of localized trading stocks.
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U2 - 10.1016/j.jempfin.2011.12.005
DO - 10.1016/j.jempfin.2011.12.005
M3 - Article
AN - SCOPUS:84860359441
VL - 19
SP - 309
EP - 318
JO - Journal of Empirical Finance
JF - Journal of Empirical Finance
SN - 0927-5398
IS - 3
ER -